American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Xiaomi stock price has more upside, but faces one key risk

by admin April 14, 2025
April 14, 2025
Xiaomi stock price has more upside, but faces one key risk

The Xiaomi stock price has pulled back in the past few weeks as investors focus on the ongoing economic war between the United States and China. After surging to $26 in March, the stock has plummeted by over 26% to the current $19. This article explores why the Xiaomi share price could rebound in Hong Kong.

Xiaomi’s business is thriving, but faces a key risk

Xiaomi share price has crashed in the past few weeks as tensions between the US and China have escalated. These tensions have led to a sharp increase in tariffs between the two superpowers, with the US charging Chinese goods a 145% tariff. China has responded by announcing a 125% tariff. 

On the positive side for Xiaomi, it has little business in the United States, with most of its sales coming from China and the emerging market, especially in China. Available data shows that the company has a 1% market share in the US. It also manufactures most of its products in China.

Therefore, from a tariff perspective, Xiaomi is largely insulated from the ongoing trade war. Even if it had a market share in the US, its products would not be tariffed since Donald Trump announced that smartphones would be exempt from the tariffs.

However, Xiaomi faces a major risk in that the company still uses American-made parts, especially from Qualcomm. Qualcomm’s SnapDragon’s chips power its most advanced smartphones, with the rest coming from MediaTek, a Taiwanese company. 

Therefore, the ongoing trade war means that Trump can turn its screws on Xiaomi by banning sales of chips to the firm. This action would mirror what he did with Huawei, a company that once dominated the smartphone market. While Huawei has rebuilt its business, its market share has shrunk considerably in the past few years. 

The other risk is that Xiaomi has entered the electric vehicle industry, making it a direct competitor to Elon Musk’s Tesla. Musk is one of Trump’s top advisors, meaning that he could engineer some actions against the company, including sanctioning top suppliers like Infineon.

Read more: Here’s why the Xiaomi stock price is beating Apple

Xiaomi earnings download

The most recent results showed that Xiaomi’s business is doing well. Its results showed that revenues jumped to over 109 billion RMB in the fourth quarter from 73 billion in the same period last year, a 48.8% increase.

The gross profit soared by over 43% to 22.45 billion RMB, while the profit for the period surged by 90% to 8.9 billion RMB. The annual revenue, gross profit, and profit soared by over 35%, 22.5%, and 34.9%, respectively. 

These numbers are impressive because they came at a time when Apple, the biggest player in the industry is slowing. Apple’s annual revenue rose by just 2.02% in 2024, down from 2.8% in 2023 and 7.79% a year earlier. 

Further, Apple has struggled to have a hit product in the past few years, with its Vision Pro’s sales being negligible. Xiaomi has launched a highly popular EV, and just recently, it raised over $5.5 billion to expand the division.

Xiaomi stock price analysis

Xiaomi stock chart by TradingView

The daily chart shows that the Xiaomi share price peaked at $59.3 earlier this year and then plunged to $35.8 as the trade war escalated. It has now moved above the 100-day and 200-day Exponential Moving Averages (EMA), a sign that bulls remain in control. It also formed a small bullish island reversal pattern. 

Xiaomi stock price has moved to the major S/R level of the Murrey Math Lines. Therefore, the shares will likely continue rising as bulls target the strong pivot reverse point at $50, up by about 15% above the current level.

The post Xiaomi stock price has more upside, but faces one key risk appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
From factory to port: how Trump’s tariffs are reshaping global shipping
next post
PepeX ICO raises $1.35M as Trump’s crypto push fuels market attention

Related Posts

Short CI: bearish breakout below trend channel signals...

January 4, 2025

Why has Jefferies asked ESG leaders to strengthen...

November 7, 2024

Here’s why the Redfin, Compass, and Zillow stocks...

September 14, 2024

GMP for Hyundai shares experiences volatility ahead of...

October 21, 2024

India’s market cap falls below $4 trillion: what’s...

February 14, 2025

Sensex, Nifty50 rise on global cues; Tata stocks...

October 10, 2024

Kering stock surges 5% despite Gucci’s slow sales:...

February 11, 2025

Are there more gains ahead for AppLovin?

October 23, 2024

Who is Paik Jong-won and why is he...

October 25, 2024

Brazil grants EuroAtlantic Airways approval for regular flight...

February 8, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Trump wants Apple to shift iPhone production from India to the US: here’s what it means

      May 18, 2025
    • Inflation outlook in 2025: what April’s soft data isn’t telling you

      May 18, 2025
    • Rich List 2025: UK billionaires decline for first time in years amid market turmoil

      May 18, 2025
    • Novo Nordisk CEO to step down as obesity drug competition intensifies

      May 18, 2025
    • Argentina’s black market for dollar falters as President Milei dismantles currency controls

      May 18, 2025

    Categories

    • Business (2,969)
    • Investing (2,434)
    • Latest News (1,990)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved